A study has found that Black Americans, especially Black women, are the most affected by wage inequalities.

Recent research has revealed that a large number of Black Americans, particularly Black women, are now earning lower wages compared to their peers across the United States. The data shows that while 23% of all U.S. workers are paid low wages, which is defined as earning less than $17 per hour, a significantly higher percentage of Black workers fall into this category when broken down by race and gender.

According to a recent analysis by Oxfam, a global organization fighting to end poverty and inequality, 32% of Black workers earn less than $17 per hour, compared to 21% of white workers. The gap is even wider when looking at gender, with 35% of Black women earning low wages, compared to 29% of Black men, 25.9% of white women, and 17.4% of white men.

The report, titled "The Crisis of Low Wages," uncovered some alarming statistics. It found that a staggering 39 million workers in the U.S.—nearly one in four—are earning low wages. Single parents are particularly affected, with 42% of them earning less than $17 per hour compared to just 12% of partnered parents.

The research also highlighted the disproportionate impact of low wages on women and communities of color, including Black workers. The federal minimum wage for non-exempt employees is currently $7.25 per hour, a rate that has not changed since 2009. While some states have taken steps to raise their minimum wage, many others have not, resulting in a higher share of workers of color earning low wages, particularly in the South. For example, in Mississippi, 46% of Black workers earn low wages, while in Texas, the state with the largest Black population, 34.2% of Black workers are paid low wages.

The report emphasizes the urgent need for the federal government to address working poverty and increase the minimum wage. Kaitlyn Henderson, the report's author and senior researcher at Oxfam America, stated that low-wage workers, who are mostly women of color, are the backbone of the economy. She stressed the importance of paying these workers wages that cover basic necessities and called for a change in the current federal minimum wage, regardless of where one lives in the U.S.

William Michael Cunningham, an economist and financial analyst, pointed out that the lack of federal action on increasing the minimum wage and reducing income inequality has resulted in wider gaps and greater hardships for these communities. He noted that Black women are often doubly disadvantaged due to both racial and gender discrimination, leading to higher rates of employment in low-wage sectors such as healthcare support, retail, and food service. He also highlighted the fact that Black women earn just 63 cents for every dollar earned by white, non-Hispanic men, and often shoulder significant caregiving responsibilities for children and elderly family members.

Henderson shared with BLACK ENTERPRISE that the higher percentages of low-wage workers in the Black community stem from a long history of racial and gender discrimination in the United States. She explained that when minimum wage laws were written in the late 1930s, industries that employed mostly Black workers in the South, such as agricultural and domestic work, were excluded from wage protections. This legacy of occupational segregation continues today, with jobs that employ a high number of workers of color, particularly women of color, paying lower wages.

Cunningham also stressed the need for comprehensive policy interventions to address wage disparities and systemic barriers. He suggested increasing the federal minimum wage, providing better access to education and job training programs, and strengthening support for childcare, healthcare, and paid family leave.

While the situation remains dire, there have been some improvements under the current administration compared to the previous one. Henderson pointed to a greater focus on addressing racial and economic inequalities through various policy measures, though progress has been slow. Cunningham noted that some states outside the South have taken independent action to raise their minimum wage, providing a better standard of living for low-wage workers. However, he emphasized the need for significant efforts at both the federal and state levels to ensure equitable opportunities for all workers, regardless of race or geography.

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